John Kim and Stephen Holder3 minutes to read
Indianapolis Colts owner Jim Irsay, who is a member of the NFL’s finance committee, said after a meeting with Harris and one of his partners that the sale of the Washington Chiefs to Josh Harris could be completed in the next “one to two months at most,” Mitchell Rales, in New York on Wednesday.
“We’re not done yet, but we’re making progress… It was a good meeting,” Irsay said.
Harris and Rales met the eight-member finance committee for the first time at NFL headquarters late Wednesday afternoon. It was another step that both sides hope will lead to the sale. On May 12, Harris entered into a signed exclusive deal with owners Dan and Tanya Snyder to purchase the team for $6.05 billion.
“Things are going well,” Irsay said. “I’m hopeful because of their inspiring side and their enthusiasm and track record that they really commit, saying, ‘Well, if it doesn’t work out, I’m going to do it right.'” Either way, we’ll correct it.’ So we’re just trying to work through those final details. I hope we can. I imagine something in mid to late July will be the earliest we call a league meeting. “
One source said last week that Harris has been in discussions with the league, and has been working to get the offer to comply for the past two weeks. There was optimism the deal would be approved, several sources said, in part because each side was highly motivated – the Harris combination, the NFL and Snyder.
A spokesman for Harris declined to comment on Wednesday’s meeting.
Once the Finance Committee approves the offer, it recommends that other owners vote for it. Twenty-four of the league’s 32 owners would need to vote to approve the bid. Last year, the committee approved the sale of Denver to the Walton family on July 27. Voted August 9th.
Irsay and the finance committee have made it clear to Harris that the deal must comply with NFL guidelines. Irsay and others expressed concern about Harris’ presentation at owners’ meetings last month in Minneapolis. There was concern about the debt load — the NFL doesn’t want the owners to take on more than $1.1 billion in debt — and the amount of equity in the deal.
Irsay said he has no problem with the size of Harris’ group. There are 20 limited partners – five partners short of the maximum amount allowed.
“They played by the rules,” Irsay said of the limited partners’ size.
But he reiterated that the league would not change the financial rules for a new owner, a point he made last month. Others, including NFL commissioner Roger Goodell and Dallas owner Jerry Jones, echoed that sentiment.
While the owners are eager to make a move on Snyder, according to multiple league sources, they also want to make sure the deal is good for the league. Irsay said Harris told them his group was worth about $100 billion, confirming their financial strength. He said Harris and Ralles were fine about having to stick to the debt buyout number, but asked to work with them “especially from a tax standpoint.”
Irsay said they told Harris and Rales that “of course” they would work with them — but they wouldn’t set a precedent for bending the rules. He said both Harris and Rales are committed to complying.
“They know it can’t be smoke and mirrors,” Irsay said. “They’ve committed to making it happen. It makes sense. I’m hopeful it can be done. It’s a complex deal. I’ve just seen this stuff fall apart when you’re just trying to tag an I and cross a T. I mean, it’s unusual, but if you stay in business a while Adequate, unfortunately, one thing is certain: No deal will be done until it is done. And I think in this case, there’s every reason to believe that compliance is going to be there because they know this has to be. They know we’re going to say, ‘Hey, sorry, no deal.'” .
The meeting was also an opportunity, said a source familiar with the owners’ thinking, for the group to get “a better understanding of the person. Most of these people have never met him.”
The Snyders put the team up for sale in November after a tumultuous three previous years, which included multiple investigations into the franchise’s workplace culture as well as their financial dealings. Dan Snyder is still being investigated by attorney Mary Jo White. A source said the findings of that report could be released ahead of any vote on Harris becoming the next owner of the Leaders. Goodell said the report will be made public when it is completed.
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